Below you will find the balance sheets of Park Corp. as of the end of 2005 and 2006. Park Corp. Balance sheets as of December 31 Cash Accounts receivable, net Merchandise inventory 2005 700,000 ,110,000 1,168,000 128,000 1,715,000 ,850,000 Equipment Accumulated depreciation Total 2,662,000 2,982,000 (655,000) (772,500) 5,590,000 6,297,500 Accounts payable Dividend payable Bonds payable 955,000 ,015,000 100,000 80,000 400,000 Common Stock Additional paid-in capital Retained earnings Total 500,000 1,500,000 1,545,000 2,535,000 2,752,500 5,590,000 6,297,500 505,000 Additional information: 1. On January 2, 2006, Park sold equipment with a book value of $35,000 for $40,000 cash The book value of the equipment was composed of an initial cost of $80,000 and accumulated depreciation of $45,000. 2. Depreciation for the year was 162,500. 3. On December 31, 2006, Park purchased equipment for cash. 4. On January 1, 2006 Park issued a bond at par and received $400,000 in cash. 5. During the year Park issued stock and received $50,000 from its new shareholders. 6. Net income for 2006 was $297,500. 7. Park declared and paid dividends during 2006 and 2005 as follows 2006 12/15/2006 2/28/2007 $80,000 2005 12/15/2005 Declared Paid Amount 2/28/2006 $100,000 Required: Prepare Park's statement of cash flows for 2006 using the indirect method